Suntech REIT acquires Adelaide Tower
A second commercial office tower has sold in Adelaide to fresh capital from Singapore in less than 2 weeks. In the latest transaction, Singapore's listed Suntec REIT, has acquired the Allianz Centre in Adelaide for $148.3m. The Suntech REIT is managed by ARA Asset Management.
The building, at 55 Currie Street, is in the heart of the city’s western core precinct and was previously owned by Arc Equity Partners who paid $81m for the asset in 2011.
The Adelaide tower provides an NLA of 26,200sqm with floor plates of 1500-2580sqm across a 5,578sqm site. The sale of the 12-storey A-grade tower was struck on an attractive initial yield of 8%.
JLL and Colliers brokered the deal which was first mooted back in February 2019.
Adelaide has been the focus of significant attention over the last 12 months, with 5 major deals above $100m being completed. Last week, SoilBuilt REIT was announced as the likely bidder for 25 Grenfell Street, whilst in May, Wingate and IPG acquired 77 Grenfell Street and in August last year 60 Flinders Street and 12 Fraklin Street each secured new buyers. The the abolishment of stamp duty on commercial properties has been a primary factor in the recent interest in Adelaide.